Paxos Expands Ecosystem of its Gold-Backed Crypto Token

Paxos, the New York-based exchange and Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term issuer, today revealed a few updates about its bullion-backed crypto asset (Pax Gold), including a new partnership that allows holders to redeem physical gold with their digital token.

Paxos already backs each PAXG token with real gold bars, meaning that anyone who owns the token also legally owns the underlying physical gold. However, the company is also engaging Alpha Bullion to enable PAX Gold holders to redeem in small sizes ranging from 1 gram to 1 kilogram, offering more versatility than other options.

“Customers with 430 PAXG can redeem full gold bars from Paxos directly, but Alpha Bullion lets customers get physical gold with smaller amounts of PAXG,” the company explains.

Withum, a top-25 auditing firm in the US, periodically verifies that Paxos Trust Company holds gold reserves that cover the number of issued and outstanding PAX Gold tokens in circulation.

As crypto-related lending business remains on a growth tear, Paxos also assured investors in its Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term-based token that they can easily earn interest on their holdings through Genesis Lending, Celsius, and Nexo. Plus, the crypto loan startup SALT now offers PAXG-backed loans as well, available in fiat or stablecoins such as PAX, TrueUSD, or USDC.

The crypto lending has become increasingly popular, and the momentum continues into the bull market. As such, Paxos integration into these lending platforms help holders who seek to double down on their crypto wagers.

Will tokenized gold appeal to crypto enthusiasts

The stablecoin issuer has also expanded the PAX Gold ecosystem as the token is now available for trading on HitBTC and Bithumb Global, with even more exchanges to follow suit soon.

PAX Gold (Ethereum ticker: PAXG) digitizes the bullion in a regulated manner by backing every PAXG by one fine troy ounce of gold held in a London vault.

Even though Paxos can provide some advantages over other issuers as a regulated trust company, similar projects have already failed to provide a long-lasting solution for tokenized gold. The latest in a string of companies pulling the plug on their bullion-backed coins has come from Goldmoney Inc. (TSX:XAU), one of the biggest precious metals ‎storage firms. Earlier this year, the company has pulled out of the vaulted cryptocurrency service without revealing the root of its decision to exit the industry.

However, Paxos’ status as a licensed financial services company in the US allows it to potentially offer tokenized securities and also to access the traditional banking system. The unique position has enabled the firm to join forces with the world’s most influential crypto exchange, Binance, to secure the NY regulator’s approval to launch a new USD-backed stablecoin.